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http://hdl.handle.net/10419/41416
  
Title:Getting beer during commercials: adverse effects of ad-avoidance PDF Logo
Authors:Stühmeier, Torben
Wenzel, Tobias
Issue Date:2010
Series/Report no.:DICE discussion paper 02
Abstract:This paper studies the impact of ad-avoidance behavior in media markets. We consider a situation where viewers can avoid advertisement messages. As the media market is a two-sided market, increased ad-avoidance reduces advertisers' value of placing an ad. We contrast two financing regimes, free-to-air and pay-TV. We find that a higher viewer responsiveness to advertising decreases revenues and entry in the free-to-air regime. In contrast, in the pay-TV regime, lower income from advertisements is compensated by higher subscription income leaving revenues and the number of channels unaffected for a fixed total viewership.
Subjects:Media Markets
Ad-avoidance
Two-Sided Markets
JEL:L11
L13
ISBN:978-3-86304-001-7
Document Type:Working Paper
Appears in Collections:DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE)

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